TMI Blog2015 (7) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act and the Rules provide that deduction shall not be made with regard to certain items, it is not permissible for the person making the deduction of tax at source to continue to make deduction of the entire amount from the bills without giving the benefit as provided under the Rules. The same in fact is in the form of injunction and violation of the same is legally impermissible. The deducting authorities are, accordingly, directed to strictly comply with the provisions of Section 41 of the Bihar VAT Act and Rule 29 of the Bihar VAT Rules in the matter of making deduction and wherever the details are provided to them by the petitioners-contractors or are available to them then they shall be obliged not to make deduction with regard to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lat deductions at source of value added tax at the rate of 4% from the bills of the petitioners relating to execution of the works contract as such action is contrary to the provisions of proviso to sub-section(2) of Section 41 of the Bihar Value Added Tax Act, 2005 as also the proviso to sub-rule(2) of Rule 29 of the Bihar Value Added Tax Rules, 2005 and for consequential directions to the respondents. In the course of hearing of the matter a suggestion was given to the respondent Commercial Tax authorities that rate of tax deduction at source of the VAT under the Bihar VAT Act may itself be fixed so as to cover the actual tax ultimately recoverable from the petitioners-contractors instead of compelling them to follow the onerous proced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the Rules. The same in fact is in the form of injunction and violation of the same is legally impermissible. The deducting authorities are, accordingly, directed to strictly comply with the provisions of Section 41 of the Bihar VAT Act and Rule 29 of the Bihar VAT Rules in the matter of making deduction and wherever the details are provided to them by the petitioners-contractors or are available to them then they shall be obliged not to make deduction with regard to the heads mentioned therein and the TDS shall be deducted only with respect to the remaining part of the bills. Any attempt by the tax authorities to compel full tax deduction at source is to be condemned. The provisions of law must be strictly followed by the authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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